Ethiopia approves major PPP projects worth 7b USD


The Public-Private Partnership (PPP) approved 13 power generation projects and three road projects. Seven of these projects will generate solar power. They cost a total of 1.005 billion USD and will generate 850MW. They include solar generation plants at Gad (125MW), Dichato (125MW), Mekelle (100MW), Humera (100MW), Welenchiti (150MW), Metema (125MW) and Hurso (125MW).
There are six other power generation projects under the new PPP scheme. They include: Genale Dawa 5 (469MW) Genale Dawa 6 (100MW), Chemoga Yeda 1 & 2 (280MW), Halele Warabesa (424MW), Dabus (798MW), and Weranso 150MW).
According to the directive there are four possible ways the projects could be handed over to private developers: a regular bid, traditional open bid, open discussion bid (negotiations) and an unsolicited bid. During the initial formation of a bid, the government will work on explorations for the projects and they will announce that they are looking for investors to participate in the development.
In an open discussion bid, the government approaches experienced and potential developers and they submit an expression of interest. In this type of bid, not every firm that wants to participate will get the opportunity.
In an unsolicited bid companies with private developers study the investment and submit a proposal to the Ministry. The unsolicited bid encourages innovation because it covers areas which the government has not yet studied. The unsolicited bid is similar to the regular one but companies that study the area get priority. When another party wins the project the losing firm will get a refund for the money they spent on the study and in some cases patent right payments.
Last year the government identified education, health, public services, roads, and energy, as priority areas. The board also approved the Adama-Awash toll road for USD 440 million while granting the 72 km Awash-Meiso toll road for USD 230 million. The 160km Meiso- DireDawa road is estimated to be 445 million USD.
The board is chaired by the minister of the finance and incorporates members from the NBE, Ministry of Water, Irrigation & Electricity, Ministry of Transport, Ministry of Public Enterprises, National Planning Commission, and Ministry of Federal & Pastoralist Affairs according to the legal framework issued last year.